Reliance Life Traditional Group Assure Employee Benefit Plan

eliance Traditional Group Assure Employee Benefits Plan is a traditional Non-Linked Non-Par Variable fund based Group product. This is renewable annually. And is only for employer or employee groups. It give a choice to employers / trustees to manage their employees’ gratuity funds through a third party, and the related administration that comes along with it.

The key features available under the plan:

Gratuity liability management - With this plan your corporate will get the necessary assistance to manage your gratuity liabilities appropriately.

Additional Interest - You will also receive an additional interest based on the additional interest rate defined for the financial year.

Tax benefits - You can also enjoy the various tax benefits as applicable as per the Income Tax Act 1961.

Free Look - You can also enjoy a free look period for this plan, and if you are doubtful of the terms and conditions then, you can cancel the policy within 15 days of receiving it.

Benefits of being part of this plan:

Retirement of the employee:

The benefit amount will be based on the scheme rules set by the employer.

The benefit amount payable will be subject to the scheme rules and funds availability in the employer's policy account. The company will be liable to the limit of funds available in their account.

If a member of the plan, has a unfortunate demise it ceases immediately on a member not being a part of the scheme. And the Death Benefit comes in.

Death or disability of the employee in service:

The benefit amount will be based on the scheme rules set by the employer.

In case of demise of a policy member, the base sum assured and rider sum assured, if any, that the employer has opted for, will be payable.

The benefit amount payable will be subject to the scheme rules and funds availability in the employer's policy account. The company will be liable to the limit of funds available in their account.

All future benefits will be terminated on the payment of benefits on account of Death

Resignations or termination of service of the employee:

The benefit amount will be based on the scheme rules set by the employer.

The benefit amount payable will be subject to the scheme rules and funds availability in the employer's policy account. The company will be liable to the limit of funds available in their account.

The Death Benefit ceases immediately on a member leaving a scheme

Leave Encashment by employees (annually):

The benefit amount will be based on the scheme rules set by the employer. In case of Leave Encashment benefits.

The benefit amount payable will be subject to the scheme rules and funds availability in the employer's policy account. The company will be liable to the limit of funds available in their account.

The plan eligibility are mentioned below:

Particulars

Minimum

Maximum

Age

18 years

69 years

Size of group

20 years

No limit

Policy term

1 year

The policy will be renewed annually and will be in force unless it is specifically terminated.

Maturity age

70 years

Sum assured

Rs. 10, 000 per member

No limit on the maximum sum assured.

Annual past service gratuity liability contribution

Rs. 2, 00, 000

No limit

How does the plan work?

The gratuity contribution payable under this policy will be based on the actuals of the individual employer’s gratuity scheme.

The Reliance Life insurance Company will keep aside assets for this plan separately, and the policy account under the plan should be disclosed on the company’s website for the fund under this plan.

The gratuity liability contribution should be paid in a lump sum or it can also be paid in instalments over a period of 5 years. These contributions may be made monthly, quarterly, half-yearly or yearly.

The policy will be renewed annual as per the date of commencement of the plan.

A policy account will be maintain for a company as a whole and not individually for each member under the plan.

An insurance cover will be provided under the scheme and >a href="https://www.bankbazaarinsurance.com/insurance/life-insurance.html">life insurance premium shall be deducted in advance on monthly basis from the policy account. These charges will reviewable each year.

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GST of 18% is applicable on life insurance effective from the 1st of July, 2017